Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

MetLife, Inc. (0K0X.L)

Company Dividend Discount ModelIndustry: Insurance - DiversifiedSector: Financial Services

Valuation Snapshot

Stable Growth$46.88 - $70.36$58.01
Multi-Stage$104.94 - $115.55$110.14
Blended Fair Value$84.07
Current Price$81.40
Upside3.29%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-3.46%-0.60%2.242.302.612.702.722.672.672.672.702.59
YoY Growth---2.49%-12.17%-3.20%-0.91%2.09%0.11%-0.05%-1.03%3.96%9.13%
Dividend Yield--2.81%3.12%4.53%3.79%4.47%8.54%6.08%5.81%5.05%4.86%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)3,841.00
(-) Cash Dividends Paid (M)1,578.00
(=) Cash Retained (M)2,263.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)768.20480.13288.08
Cash Retained (M)2,263.002,263.002,263.00
(-) Cash Required (M)-768.20-480.13-288.08
(=) Excess Retained (M)1,494.801,782.881,974.93
(/) Shares Outstanding (M)682.25682.25682.25
(=) Excess Retained per Share2.192.612.89
LTM Dividend per Share2.312.312.31
(+) Excess Retained per Share2.192.612.89
(=) Adjusted Dividend4.504.935.21
WACC / Discount Rate6.76%6.76%6.76%
Growth Rate-2.60%-1.60%-0.60%
Fair Value$46.88$58.01$70.36
Upside / Downside-42.40%-28.74%-13.56%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)3,841.003,779.713,719.403,660.063,601.663,544.193,650.51
Payout Ratio41.08%50.87%60.65%70.43%80.22%90.00%92.50%
Projected Dividends (M)1,578.001,922.612,255.812,577.902,889.133,189.773,376.73

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.76%6.76%6.76%
Growth Rate-2.60%-1.60%-0.60%
Year 1 PV (M)1,782.541,800.841,819.14
Year 2 PV (M)1,939.111,979.132,019.55
Year 3 PV (M)2,054.532,118.462,183.71
Year 4 PV (M)2,134.832,223.862,315.65
Year 5 PV (M)2,185.272,299.782,419.03
PV of Terminal Value (M)61,500.6264,723.0868,079.23
Equity Value (M)71,596.9075,145.1578,836.31
Shares Outstanding (M)682.25682.25682.25
Fair Value$104.94$110.14$115.55
Upside / Downside28.92%35.31%41.96%

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